Minnesota Medicaid Fraud: Investigators Uncover Massive Scam Involving 14 State Programs

Fri Dec 19 2025 12:27:25 GMT+0200 (Eastern European Standard Time)

Federal prosecutors in Minnesota have revealed extensive fraud within state-run Medicaid programs, potentially amounting to billions in illicit payouts, as new charges are announced against defendants involved in deceitful schemes.

At least 14 state-run programs in Minnesota have been identified as fraudulent, as federal prosecutors estimate that a significant portion of $18 billion disbursed through Medicaid in the state may be linked to fraudulent activities. Investigators have charged new defendants in conjunction with deceptive housing services schemes, highlighting the urgent need for improvements in program oversight.

MINNEAPOLIS (QUANTA.REPORT) — Minnesota is facing scrutiny as state-run programs have been flagged for substantial Medicaid fraud, according to new reports from federal prosecutors.

During a recent press briefing, First Assistant U.S. Attorney Joe Thompson disclosed that investigators suspect a considerable amount of the $18 billion allocated by Medicaid to be associated with fraud.

In Minnesota, this isn’t just a few bad apples; this issue is widespread, Thompson stated. Our findings suggest that entire programs are operating on a fraudulent basis. Thompson's comments resonated with ongoing national discussions about fraud and accountability.

The ongoing investigations are significant to the broader dialogue around governmental mismanagement, especially as the focus intensifies on specific communities affected by these fraudulent activities.

In connection with the rising fraud allegations, five new individuals face charges due to their involvement in a housing services scam. Prosecutors argue that these defendants diverted approximately $750,000 intended for aiding Medicaid recipients in securing stable living conditions, instead utilizing the funds for extravagant travels to cities like London and Dubai.

One particular defendant is accused of submitting $1.4 million in fraudulent claims, diverting the funds into purchasing cryptocurrency before fleeing the country.

This wave of fraud is pushing Minnesota's Medicaid programs under the microscope, with officials emphasizing that inappropriate claims compromise legitimate resources needed by actual patients. There's a real human cost here — people in need of assistance are being denied due to the misconduct of a few, Thompson remarked.

Investigators are also focusing on an additional scheme concerning a federally funded program that aids children with autism, where new claims and defendants are emerging. Currently, there is a growing consensus among prosecutors that improvements are essential within Minnesota’s state-run programs to effectively combat this rampant fraud.